For our parents, graduating from college, getting a job, and staying there for the next 30 or so years was the norm.
Business trends are now showing that more and more people are opting to strike out on their own and establish their own businesses.
Being your own boss is a great option, but the biggest complaint is the struggle to stay on top of invoicing. Thankfully, there are subscriptions API programs out there that have taken that responsibility off of your hands.
Let’s take a quick look at the advent of subscriptions API and how they can help you take charge of your billing process.
What is a Subscriptions API?
If you have ever paid for any reoccurring payments online, then chances are you have used a program known as subscription API. This type of program was developed to help streamline the process of reoccurring billing for businesses and individuals.
This process of invoicing is, many times, run by third party sites and helps to minimize errors and human oversight that occur during the billing process.
Some of today’s most successful online businesses such as eBay and Amazon launched their APIs back in early 2000, so it is a concept that is not new on the market.
How does a Subscriptions API help with scalability?
Software as a Service (or SaaS) has become a must in today’s business arena. As technology has advanced, merchants and retailers had to find a way to keep up with changing demands.
The more the everyday consumer went online to find the information they needed, the more businesses realized they needed to find a way to help connect their products and services to the online marketplace.
As a business, there will always come a moment when you want to grow your business, but before you are able to make the push, you need to understand how to utilize software as a service.
Monetizing your website is one of the best ways to use subscription API and all of the metrics that go along with it. The monthly subscription model is probably the most straight forward way to do so, but it is not without its challenges.
With your subscription API, you must first set your parameters.
These will consist of items such as the dollar amount of debits, the number of times the system will debit, a starting date, description, and of course, the payment method.
What businesses use a Subscriptions API
In today’s market, it seems every website has the option for some form of subscription. From makeup companies offering monthly boxes to stores offering to deliver your groceries, subscription API’s are in virtually every industry in the world.
One way that the small business owner can utilize this technology is through invoicing.
Setting up a way for clients to pay on your website for your services or have the option for your services to be charged each month automatically helps to set you apart from your competition.
Build Vs. Buy
Many entrepreneurs are very tech-savvy individuals who bring about the question, should you create your platform or utilize an already existing subscription API platform. The best answer to that question is simple—why try and reinvent the wheel when there is no need.
In business, time is money, and the longer your products or services are not online, the longer the conversion process is going to take. Why waste your time when you could be focusing on other aspects of your business?
Once you sign up for the subscription platform, the set up is efficient and seamless. Plug the program into your website, and allow it to do what it was created to do—manage your invoicing needs.
Managing updates
One of the best things about using a third-party subscription API platform is that most companies stay on top of all of their software updates. This benefit helps to reduce the time that you would otherwise be spending on coding to ensure your website could handle the change.
There is also the added benefit that should you need a new integration such as a quarterly billing cycle instead of a monthly option; you can simply log in and change the credentials in an easy to understand format.
Measuring metrics
By far, one of the biggest advantages of using subscriptions API is the ability to monitor key metrics from your clients. Let’s take a quick look at some of the following:
Revenue
Keeping track of your revenue is key to spotting trends in your business. This metric can help you plan future marketing strategies to help you recoup losses in the months that are slower.
Churn Rate
Churn rates are one metric that is vital to keep track of as this is the rate that your current subscribers discontinue your service. Knowing why people leave your product or service can help any business make improvements and monitor their service levels.
Customer Lifetime Value
When it comes to subscription billing, your customer lifetime value represents the total amount of money that each client spends. This information is helpful when it comes to seeing how varying demographics spend their money.
Better business tactics
In such a competitive market, it’s no wonder that many businesses fail within the first couple of years. This is why streamlining your billing is so crucial to your success.
By setting up your billing with automated subscriptions API, you do more than managing and maintaining your billing tiers. You’re helping to create a great customer experience for all your clients, and when your clients are happy—they won’t be looking anywhere else.
For more details on how we can help you, check out our website for more information.
